Glasgow and Edinburgh swap places as Scottish FDI strong
Scotland secured 135 FDI projects last year, the EY figures show.
Although down by 4.9% on the all-time high annual number of 142 FDI projects won, in 2023, the figure for 2024 was the second-highest on record.
Scotland's share of UK FDI projects was 15.8% last year, up from 14.4% in 2023 and significantly higher than the average of 11.5% over the last decade. In 2022, Scotland's share was 13.6%.
Glasgow, with 27 projects, became Scotland's leading city for FDI for the first time in five years - a position that Edinburgh held between 2020 and 2023. And Glasgow was the second-most popular UK city outside London for FDI, after Manchester, which won 44 projects in 2024.
Scotland's 'three major cities are once again in the UK top 10 cities', EY observed, with Edinburgh having secured 24 projects and Aberdeen 12 projects.
EY's figures show Scotland has been second only to London in terms of the number of FDI projects won in every year since 2015. Scotland was also second only to London in 2010 and 2012.
For 2024, Scotland is ranked sixth among the top 10 FDI locations in Europe.
The UK recorded 853 FDI projects in 2024, a 13% decline from 2023, making it Europe's second-top country for attracting inward investment. France ranked first in Europe in 2024 with 1,025 projects - a decline of 14% year on year.
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Around 25% of global investors planning to establish operations in the UK over the next year said they expected to choose Scotland. This put Scotland second only to London, for which the figure was 62%.
The US remains Scotland's top source of FDI projects.
Scotland attracted 37 FDI projects from US players in 2024 - a rise of 37% on 2023 and bringing the total over the last decade to 356, EY noted.
The US accounted for 27.4% of Scotland's total number of FDI projects during 2024. This was a higher proportion than the 23.7% of UK FDI projects originating from the US.
The number of FDI projects attracted by Scotland from German players fell by 40% to 12 last year. Even so, Germany remained the second-biggest source of FDI projects for Scotland in 2024, followed by France with eight projects.
Ally Scott, managing partner of EY Scotland, said: 'Put simply, Scotland continues to punch above its weight with inward investment. While project numbers slipped back slightly in 2024 from their record high the previous year, a much sharper fall in projects into the UK overall saw Scotland's share increase for the sixth year running. In doing so, Scotland consolidated its decade-long position in second place for UK FDI.'
He added: 'While FDI is only one part of the Scottish economy, the challenge is ensuring the policy landscape continues to react to changing business and demographic needs. Many priorities of international investors considering Scotland are very similar to those of our homegrown business community - future-proofed infrastructure, an efficient planning system, a skilled workforce, simplified tax structure - improve these levers and you're activating broader economic growth.
'Far from relaxing after a job well done, it's time for Scotland to take some confidence from these findings and to double-down and cement its hard-won position.'
Peter Arnold, EY UK chief economist, said: 'London remains the leading UK destination for investment, while Scotland has now achieved second position for each of the last 10 years.'
Scotland's top FDI sectors in 2024 were machinery and equipment, with 19 projects; software and information technology, with 15 projects; and agri-food and utility supply, in joint-third place with 14 projects.
Meanwhile, Scotland was the UK leader in FDI in oil and gas, with seven projects, as well as in inward investment in the utility supply, electronics, and machinery and equipment sectors. Scotland attracted 11 financial services FDI projects in 2024, representing a decade high, and is the top location outside London for inward investment in this sector.
Edinburgh, with six FDI projects in financial services, is the joint-top city outside of London for inward investment in this sector, alongside Manchester.
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